Dozens of former WH Smith stores face closure, putting thousands of jobs at risk
Summary
The new owner of former WH Smith high street stores, renamed TG Jones, plans to close dozens of shops, risking thousands of jobs due to weak sales and rising costs. The company aims to reduce rents and restructure to try to save the business, but the changes need approval from creditors and a court.Key Facts
- Modella Capital bought 480 WH Smith high street stores for £76 million last year and renamed them TG Jones.
- Eight stores will close immediately, and the company seeks rent cuts or holidays for many others to avoid further closures.
- The chain employs about 5,000 people.
- TG Jones has been losing money due to weak consumer spending, higher operating costs, and negative effects from the name change.
- Modella plans to invest £35 million as part of the turnaround strategy.
- The restructuring requires approval through a creditor vote and court process.
- Modella has closed other retail chains recently, including Claire’s and The Original Factory Shop, with significant job losses.
- WH Smith’s travel stores were not sold and continue to operate normally.
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